Intel moves to acquire SambaNova at valuation below 2021 USD 5 billion peak
Intel is edging closer to a deal that could reshape its AI‑chip ambitions, but the numbers tell a different story than the hype surrounding the target. While the chip startup once commanded a $5 billion price tag in April 2021, recent market signals suggest a lower ceiling for any sale. Adding another layer, the man steering Intel’s broader strategy, Lip‑Bu Tan, also chairs the startup’s board—a dual role that raises questions about governance and valuation alignment.
Meanwhile, Intel Capital, the corporate venture arm currently being unwound into an independent fund, has already placed money on the table for the company. These intertwined relationships and the shifting valuation backdrop make the pending acquisition more than a straightforward purchase; they hint at strategic calculus that goes beyond headline numbers. The next piece of reporting drills into exactly how far below that historic peak the deal might land.
The report noted that SambaNova could sell for less than the $5 billion valuation it had reached in April 2021. Notably, Intel CEO Lip‑Bu Tan is currently the chairman of SambaNova Systems. Intel Capital, which Intel is in the process of spinning off into a standalone fund, has also invested in Samb
The report noted that SambaNova could sell for less than the $5 billion valuation it had reached in April 2021. Notably, Intel CEO Lip-Bu Tan is currently the chairman of SambaNova Systems. Intel Capital, which Intel is in the process of spinning off into a standalone fund, has also invested in SambaNova Systems.
Another investor in SambaNova, Japan's SoftBank Group, made a major investment in Intel earlier this year. Intel had not yet responded to requests for comment at the time of publication. SambaNova Systems was founded in 2017 in Palo Alto, California by Kunle Olukotun, Rodrigo Liang, and Christopher Ré.
Olukotun and Ré are Stanford professors; Liang previously worked as an executive at Oracle. SambaNova Systems makes an AI chip platform for inference computing, a process where large language models make predictions from vast amounts of data. As of early 2025, the startup had raised a total of $1.14 billion in funding, according to PitchBook data.
In 2020 it raised $250 million from asset manager BlackRock, Intel Capital, the venture firm GV, and other investors, bringing the startup's valuation to $2.5 billion. The following year, SambaNova was valued at $5 billion after a massive funding round of $676 million, led by SoftBank's Vision Fund 2.
Will the deal survive the coming weeks? Intel has signed a non‑binding term sheet to acquire SambaNova, but the specifics remain hidden. The agreement could dissolve without penalty, and regulators may still raise questions.
A valuation below the $5 billion peak of April 2021 is being discussed, yet no figure has been confirmed. Lip‑Bu Tan, Intel’s chief executive, also chairs SambaNova, a dual role that adds a layer of complexity to the transaction. Meanwhile, Intel Capital, now being spun out into an independent fund, has already backed the startup, suggesting some continuity of interest.
The timeline for approval, liability review, and financial due diligence is uncertain; weeks or months could pass before any final decision. Until those steps are completed, the acquisition remains a proposal rather than a certainty. Stakeholders will be watching how the non‑binding nature of the term sheet translates into an actual purchase, and whether the price gap will affect integration plans.
Further Reading
- Intel Targets AI Inference Leap with Potential SambaNova Acquisition - EE Times Asia
- Intel making yet another AI processor acquisition? - Jon Peddie Research
- Intel (INTC) Pursues Acquisition of AI Chip Maker SambaNova Systems - GuruFocus
- Intel Eyes AI-chip Startup SambaNova for Strategic Boost - Channel Insider
- Intel to acquire AI chip startup SambaNova at around $5 billion - Startups Union
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Common Questions Answered
What valuation is being discussed for Intel's acquisition of SambaNova compared to its April 2021 peak?
The article indicates that the potential sale price for SambaNova is expected to be below the $5 billion valuation it reached in April 2021. No exact figure has been confirmed, but analysts suggest a lower ceiling than the previous peak.
How does Lip‑Bu Tan's dual role affect the proposed Intel‑SambaNova deal?
Lip‑Bu Tan serves as both Intel's chief executive and the chairman of SambaNova, creating a potential conflict of interest that raises governance concerns. This dual position adds complexity to valuation alignment and may attract regulatory scrutiny.
What is the significance of Intel Capital's involvement in SambaNova amid its spin‑off?
Intel Capital, which is being spun out into a standalone fund, has already invested in SambaNova, linking the two companies financially before the acquisition. This existing investment could influence the terms of the deal and the perceived fairness of the valuation.
How might SoftBank Group's investments impact the Intel‑SambaNova transaction?
SoftBank Group, a major investor in SambaNova, also made a significant investment in Intel earlier this year, creating intertwined financial interests. This relationship could affect negotiations and regulatory review, given SoftBank's stake in both parties.